Bank shares stabilise after Vickers calls for radical shake-up

Banks led markets sharply lower in early trading but their shares have now stabilised as markets digest the long-awaited Independent Commission on Banking report.

The report said banks should split their investment and retail banking operations, as well as raise capital requirements sharply - above levels proposed by Basel III regulations. In reaction shares dropped sharply at open, dragging the FTSE 100 down over 2%, or 115 points, to 5,099. Banks were the biggest losers in early trading, not helped by sharp moves downwards in the shares of their European peers, with Barclays off 2.9% or 4.15p, at 139.9p, Lloyds lower by 2.37% or 0.74p, at 30.3p, and RBS down 4.8%, or 1.03p, at 20.47p. Asian-focused banks HSBC and Standard Chartered were mo...